LegalOn Raises $50M to Expand AI Contract Review Platform

Contract review is still a slow, manual task for legal teams, requiring lawyers to comb through complex language and flag potential risks. LegalOn Technologies, a Tokyo-based startup, has built a strong presence tackling this issue with AI. Its contract review platform, Review, is now used by 7,000 organizations across Japan, the U.S., and the U.K., including 25% of Japan’s public companies.

Review uses attorney-built playbooks and client-specific standards to flag legal risks and suggest edits. LegalOn claims it cuts review time by up to 85% while boosting accuracy and consistency.

The company recently raised $50 million in Series C funding, led by Goldman Sachs and joined by WiL, Mori Hamada & Matsumoto, Mizuho Bank, and Shoko Chukin Bank. The funds will help develop AI agent tools and expand LegalOn’s presence in the U.S. and U.K., where its business has grown 4x in the past year.

Founded in 2017 by former lawyers Nozomu Tsunoda and Masataka Ogasawara, LegalOn is focused on automating not just contract review, but related legal workflows like request management and contract tracking. Its new Matter Management tool helps legal teams collaborate across departments and manage contract lifecycles more efficiently.

LegalOn also partnered with OpenAI to integrate the latest LLMs into its products, combining cutting-edge AI with proprietary legal expertise. Global CEO Daniel Lewis says this hybrid approach delivers out-of-the-box accuracy aligned with real legal standards.

Despite growing investment in legal AI — competitors like Harvey AI and Clio have raised hundreds of millions — Lewis believes lawyers remain essential. “AI won’t replace lawyers,” he says. “But it will supercharge the ones who use it well.”

LegalOn has now raised over $200 million from investors including SoftBank, Sequoia China (now HSG), JAFCO, and MUFG Bank.